- SoftBank sold all of its 32.1 million Nvidia shares for $5.83 billion
- The sale funded $22.5 billion in investments in OpenAI and AI tools
- The stake sale was part of SoftBank’s broader “asset monetization” strategy.
SoftBank’s decision to sell all of its Nvidia shares has drawn sharp attention from investors already wary of overheated AI valuations.
The Japanese conglomerate sold its entire 32.1 million-share holding for about $5.83 billion, ending a position that dates back to Nvidia’s early rise as the chip industry’s leading AI vendor.
Nvidia shares fell about 2% after the sale, though analysts say the move may have less to do with doubts about Nvidia and more to do with SoftBank’s urgent need for cash.
A strategic move – or something more?
New Street Research analyst Rolf Bulk noted that the sale “should not be seen” as a lack of confidence in Nvidia, but rather a practical decision.
SoftBank reportedly needs at least $30.5 billion in new investments in the final quarter of the year, with $22.5 billion allocated to OpenAI and another $6.5 billion to Ampere.
The total represents more investment in one quarter than in the previous two years combined.
“We want to provide investors with a lot of investment opportunities while still being able to maintain financial strength,” SoftBank’s chief financial officer, Yoshimitsu Goto, said during an investor presentation.
“So through these options and tools we ensure that we are ready for funding in a very secure way”
The company added that the share sale was part of its broader strategy of “asset monetization.”
This suggests a strategic shift towards broader AI projects rather than an exit from the AI space itself.
Former Intel CEO Pat Gelsinger has warned that the AI sector is in bubble territory, although he expects any correction to unfold gradually.
Recent financial disclosures also show that Michael Burry’s Scion Asset Management has opened large option positions tied to Nvidia and Palantir.
The nominal value of these positions exceeds $1 billion, signaling an apparent bet on downside risk in the ongoing AI rally.
But SoftBank also sold part of its stake in T-Mobile for $9.17 billion and raised funds through a margin loan on its ARM Holdings shares.
Insiders claim these asset sales are merely “sources of cash” for new acquisitions, including ABB’s robotics business.
That sale and SoftBank’s $19 billion gain this quarter from the Vision Fund bolstered its growing portfolio of AI-focused holdings.
“The reason we were able to achieve this result is because of last September, which was the first time we invested in OpenAI,” SoftBank’s Goto said.
SoftBank remains deeply tied to Nvidia through projects like the $500 billion Stargate data center initiative, which still depends on Nvidia’s GPUs and AI tools.
Via CNBC
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